State of Illinois. Civic Federation Debt and Infrastructure Committee October 24, 2012. 0. Disclaimer.
This Presentation does not constitute a recommendation or an offer or solicitation for the purchase or sale of any security or other financial instrument, including Bonds, or to adopt any investment strategy. Any offer or solicitation with respect to such Bonds will be made solely by means of a Final Official Statement, which describes the actual terms of any such Bonds. You should consult with your own advisors as to such matters and the consequences of the purchase and ownership of such Bonds. No assurance can be given that any transaction mentioned herein could in fact be executed. Past performance is not indicative of future returns, which will vary. Transactions involving such Bonds may not be suitable for all investors. You should consult with your own advisors as to the suitability of the Bonds for your particular circumstances.
This Presentation contains forecasts, projections, and estimates that are based on current expectations but are not intended as representations of fact or guarantees of results. If and when included in this Investor Presentation, the words “expects,” “forecasts,” “projects,” “intends,” “anticipates,” “estimates,” and analogous expressions are intended to identify forward looking statements as defined in the Securities Act of 1933, as amended, and any such statements inherently are subject to a variety of risks and uncertainties, which could cause actual results to differ materially from those contemplated in such forward looking statements. These forward looking statements speak only as of the date of this Investor Presentation. The State disclaims any obligation or undertaking to release publicly any updates or revisions to any forward looking statement contained herein to reflect any change in the State’s expectations with regard thereto or any change in events, conditions, or circumstances on which any such statement is based.
Illinois Economy Compared to Largest States1
($’s in billions)
U.S’s 5th Largest Economy
Non-Farm Payroll Jobs by Industry3
1 Source: Bureau of U.S. Department of Commerce – Bureau of Economic Analysis, GDP by State, 2011
2Source: U.S. Census Bureau, 2011 Census Data. http://quickfacts.census.gov/qfd/states/17000.html
3Source: Bureau of Labor Statistics, June 2012; http://www.bls.gov/eag/eag.il.htm, http://www.bls.gov/news.release/empsit.t17.htm.
National and International Economic Hub
Annual Exports by Top Ranked U.S. States2
Illinois home of many fortune 500 companies’ HQ
1 Source: Illinois Department of Commerce and Economic Opportunity. http://www.ildceo.net/NR/rdonlyres/80F50180-8E4F-473B-9BB9-D122F7D6A749/0/Fortune500_2011.pdf;
2 Source: WISERTrade at HCC: State Exports by NAICS Database, 2011; https://www.wisertrade.org/naics/ftbegin.
1 Source: Illinois Historic Preservation Society, http://www.state.ilus/hpa/ilchronology.htm. Perfect repayment history from various publications and the Governor’s Office of Management and Budget.
2 Source: Official Statement Series September 2012; Includes all General Fund supported debt.
3 Source: $600 million of total debt outstanding is synthetic fixed.
4 Source: Chapter 9 of US Bankruptcy code is only available to municipalities and political subdivisions, not States themselves.
Fiscal Year End Cash Balances1
($ in millions)
1Source: State of Illinois Governor’s Office of Management and Budget.
2 Source: State of Illinois Constitution.
*”Scoop and Toss” financing is the technique of repaying current maturities of debt through
the issuance of new longer maturity bonds.
For the first time in its history of the State of Illinois, money will be budgeted based on how effectively programs provide results that citizens value, rather than being based on the money allocated in the previous fiscal year.
Budgeting for Outcomes is a four-step process:
As released January 3, 2012. May not add due to rounding.
Note: Net Agency Expenditures does not include cost of Group Health and Transfers Out. $ in billions.
Source: State of Illinois Enacted Budget FY2013, A Review of the Operating Budget for the Current Fiscal Year, October 8, 2013, The Institute
For Illinois’ Fiscal Stability at the Civic Federation
Statutory Spending Limitation2
Revenue Enhancement – $7 billion expected annual impact1
1 Source: Official Statement Series September 2012, P.A. 96-1496
2 Source: Official Statement Series September 2012, P.A. 96-1496
3 Source: Official Statement Series September 2012,P.A. 97-689, 97-688, 97-691 and 97-732
4 Source: Official Statement Series September 2012, P.A. 96-889
5Source: Official Statement Series September 2012, P.A. 96-958
6 Source: Official Statement Series September 2012, P.A. 97-695
7 Source: Official Statement Series September 2012. P.A..97-685
Illinois Jobs Now!: Largest BondsPublic Works Program in State’s History
Illinois Jobs Now!, a $31 billion six year capital improvement program, has helped Illinois on its path to recovery by leveraging new State revenues with over $3.7 billion in American Recovery & Reinvestment Act funds.
1Individual program elements figures do not sum to $31 billion due to rounding
State of Illinois Bonds